MKT 300 Ch. 8 & 9

Advantages of Internet Surveys

-cheap -real-time reporting -personalized questions and data from cookies

4 Important Company Characteristics

1. Geographic location 2. Company type 3. Company size 4. Product use

Market Research Process

1. Identify problem or opportunity 2. Plan research design and gather secondary data 3. Specify sampling methods 4. Collect Primary Data 5. Analyze data 6. Prepare and present report 7. Follow up

Characteristics of a Market (4)

1. People or organizations 2. Needs and wants 3. Ability to buy 4. Willingness to buy *If a group lacks any of these, it is not a market*

Steps in Segmenting a Market (6)

1. Select a market for study 2. Choose bases for segmentation 3. Select descriptions 4. Profile & analyze segments 5. Select market 6. Design, implement, and maintain appropriate marketing mixes

80/20 Principle

20% of customers generate 80% of the demand

Target market

A group of people in which an organization designs, implements, and maintains a marketing mix intended to satisfy the groups needs in hopes of the result of mutually satisfying exchanges.

Perceptual Mapping

A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customer's minds.

Product Differentiation

A positioning strategy some firms use as a means of making their product stand out in comparison to the competition.

Market Segment

A subgroup of people or organizations that share one or more characteristics that cause them to have similar product needs.

Secondary Data

Already collected by a secondary source. Government agencies, business periodicals...

Repositioning

Changing a customer's perception of a product or brand in relation to competing brands.

3 Types of Questionnaire Questions

Closed answer Open answer Scale

Primary Data

Conducting and collecting research for the 1st time

Buyer characteristics (5)

Demographics Decision Style Tolerance for Risk Confidence Level Job Responsibility

3 Roles of Marketing Research

Descriptive- Gathering date Diagnostic- Exlpaining data Predictive- Using the descriptive and diagnostic info to answer what if questions

Positioning

Developing a specific marketing mix to influence a customer's perception of a brand, product, or organization.

Usage-Rate

Dividing a market by the number of products bought or consumed.

Describe Numi's typical customer. Who is the customer and how did Numi marketing team figure that to?

Female, college educated, and buys organic

Bases for Market Segmentation (5)

Geographic- Demographic- Psychographic- Benefits Sought- Usage Rate-

Why is market segmentation important?

Marketers can better define customers needs and decision makers can define objectives and allocate resources.

Market Segmentation

Process of dividing a market into meaningful, relatively similar, and identifiable segments, or groups.

Bases for Segmenting Business Markets (4 Ch.7)

Producers Resellers Government Institutions

What is Numi's principle marketing plan? In what ways do they know their target market and try to reach them?

Sampling is Numi's key marketing plan. Charities such as breast cancer to reach target market.

Benefits Segmentation

Segmenting customers into markets based on the benefits they seek from products.

Psychographic Segmentation

Segmenting markets based on personality, motives, lifestyle, and geodemographics.

Demographic Segmentation

Segmenting markets by age, income, ethnicity, and family life cycle.

Geographic Segmentation

Segmenting regions of the world based off of market size, market density, or climate.

Market Research

The process of planning, collecting, and analyzing data relevant to marketing decisions.